Vietnam’s apparel exports saw a marginal drop of 0.1 per cent on an M-o-M basis in October ’23 to US $ 2.57 billion, as per Vietnam Cotton and Spinning Association (VCOSA).
On the other hand, the country’s exports of footwear increased 30.3 per cent to US $ 1.70 billion.
Commenting on the apparel export decline, Duong Thuy Linh, Deputy General Secretary of VCOSA mentioned that the difficulty was not unique to the garment and textile industry of Vietnam.
Global exports experienced a decline, primarily driven by a reduction in worldwide demand exacerbated by geopolitical tensions, escalating inflation in major markets like the US and the EU, and the implementation of tighter monetary policies in several countries. These factors compelled global consumers to curtail their spending habits.
Simultaneously, the textile industry faced increasing challenges as sustainability standards became more rigorous, and competition intensified from countries like Bangladesh and Myanmar. Consequently, textile companies encountered a decrease in both the number and size of orders.
Linh noted that many textile enterprises had to scale down production to 50-80 per cent from the end of the preceding year until the second quarter of the current year. However, a modest recovery began in July, with most producers returning to full production capacity.
Despite this recovery, VCOSA anticipates persistent challenges for Vietnam’s garment and textile sector due to sustained low consumption demand throughout 2024. The association forecasts that the export value for the year will be approximately US $ 40 billion, reflecting a 10 per cent decline compared to the previous year.
